Group Demand 72.5% Increase In Cocoa Price2 min read
Ghana Civil-Society Cocoa Platform (GCCP), an independent campaign and advocacy platform in the cocoa sector has demanded a minimum increment of 72.5% for the farm gate price of cocoa for this season which translates into a minimum of GH¢1,380 per bag of cocoa beans.
Addressing the media in a press conference in Accra Member of GCCP, Leticia Yankey, stated that they made a modest estimation taking into consideration the prevailing international market dynamics which have led to over 35% increment in the International Cocoa Organization (ICCO) world cocoa market price as well as the challenges posed by the unstable Ghana cedi, the high inflation, the high cost of labour and most importantly the need for farmers to be paid adequate and commensurate prices for their efforts.
Also, based on the working assumption of the Producer Price Review Committee (PPRC), which aims at ensuring the farm gate price is pegged at a minimum of 70% of the net Free on Board (FoB) price of cocoa beans.
“We are of the firm opinion that farmers in Ghana should be receiving a minimum of GH¢22,080 per tonne, which is equivalent to GH¢1,380 per bag (62.5kg)of cocoa beans,” she underscored.
Leticia Yankey further indicated that the price estimates were pegged using the lowest projected values available including a Living Income Differential (LLD) of $400 per tonne as agreed.
She said the net country cocoa selling price (producer price) is expected not to be less than $3,146. Based on the 2023/2023 parameters for calculating the net FoB for cocoa beans, “we expect the net FoB for 2023/2024 cocoa season to be not less than 80% of the prevailing producer price, which should be around $2,518,” she said.
According to Leticia Yankey by applying the PPRC working assumption of a minimum of 70% of net FoB going to farmers as producer price, that translates into $1,762 per ton for the farmer. This is less than the $400 LID that was instituted and charged by COCOBOD for the 2022/2023 cocoa season.
“Assuming COCOBOD gives all $400 LID to the farmer, that brings the farm gate price to $2,162 per tonne ($135 per bag) for the 2023/2024 coco season.
Using the year-on-year Bank of Ghana exchange rate of $1: GHS10.2, cocoa farmers are expected to receive not less than GH¢22,080 per tonne of cocoa beans which should translate into a minimum of GH¢1,380 per bag of cocoa beans,” she added.
Meanwhile, President Akufo-Addo is set to announce the farm gate cocoa price on Saturday, 9th September 2023.